2 ms·
A few region banks may fail, but they’ll be bailed out just like SVB.
by nostromo 2y ago
A few region banks may fail, but they’ll be bailed out just like SVB.
- theturtletalks 2y agoWas SVB bailed out? I thought they were over leveraged, but had customer’s funds and gave those back. Did I miss something?
- dpe82 2y agoThey were not. The bank failed; FDIC came in and shut them down and then sold the remaining assets to First Citizens. Previous SVB shareholders were wiped out. That's how the system is supposed to work.
- nostromo 2y agoIt depends on your definition. The bank itself wasn't bailed out, but the customers and other banks were. The FDIC was expanded from 250k to infinity and the Fed created BTFP, which allows banks to borrow against their treasuries (which had declined dramatically in value). This all comes at the cost of the general public.